Nurture small businesses, create jobs, experts say

By MEGAN DURISIN Capital News Service

LANSING – Money may not grow on trees, but experts say the best way to foster small business growth is through economic gardening.

“In Michigan, large companies are the news, more than any other state,” said Rob Fowler, president of the Small Business Association of Michigan (SBAM). “Big businesses get the headlines, but jobs come from small businesses.”

Among the beneficiaries of economic gardening are companies in Traverse City, Clare County and Gladwin County.

Michael Rogers, vice president of communications for the association, said the concept of economic gardening is to encourage the growth of the state’s own small businesses.

“Improving access to capital, decreasing regulatory start-up costs and partnering with universities to develop new technology are all part of it,” Rogers said.

Rogers said economic gardening is the opposite of economic “hunting,” which tends to be the focus of state government and attempts to lure out-of-state companies into Michigan. That approach usually aims at big businesses.

“The state needs both,” Rogers said.

Rogers said SBAM’s membership has grown from 5,000 to 9,000 in the past two years, despite the difficult economy.

“We focus the power of small businesses so they can work together to accomplish what they can’t accomplish on their own,” Rogers said.

Rogers said there is a broad and diverse small business economy in Michigan, but owners who are committed to their companies and have successful mentors are key elements to their success.

“It all boils down to having passion, good preparation, lots of support and access to adequate capital,” Rogers said.

Tony Fox, regional director of the Michigan Small Business and Technology Development Center based at Grand Valley State University, said businesses in the state have the potential to grow.

“Small businesses can balance out the ill effects large business has created,” Fox said.

Fox said the center provides no-cost counseling for existing and start-up businesses, as well as workshops and market research through local host Mid Michigan Community College.

The center worked with 214 clients in Clare County and 94 in Gladwin County in 2009.
Fox said he believes success for small businesses comes from becoming more informed about their industry.

“In challenging times, companies have to be fundamentally sound,” Fox said. “There’s no room for inefficiency. It’s about how to implement strategies to grow.”

Jennifer Deamud, marketing manager for the Small Business and Technology Development Center, said 27 of the 50 businesses recognized by the Michigan 50 Companies to Watch program in 2009 were clients of the center.

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